Digital Payment Speeds Service Drives Sales

Legacy grocery stores have long been known by consumers as a place that it takes too long to shop at and even longer to wait in line to pay only to coaxed while in line for that last minute impulse buy the consumer really did not want according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In a new study by Adyen found “Over the last 12 months, 86 percent of U.S. consumers say they have left a store due to long lines, resulting in purchases at a different retailer or no purchase at all. This resulted in approximately $37.7 billion lost in potential sales. In addition, $1.1 billion in potential sales have been lost when retailers don't support their customers' preferred payment methods, the survey found.

A key segment emerged in the study, coined "Spendsetters." This group loves to use technology, tends to be early adopters and represents one-third of all consumers and 52 percent of millennials.

According to Adyen, spendsetters will drive the future of retail as the key segment of shoppers who set the trends for how people want to spend and shop. The group is also the leading indicator of broader customer demands in retail experience and where the industry is headed.

Roelant Prins, chief commercial officer at Adyen stated "Retailers need to cater to shoppers by offering fast, easy and frictionless ways to pay so there are minimal lines and offer personalized recommendations and in-store deals. In other words, experience is key." Additional findings on Spendsetters from the survey include:

·         45 percent believe brand is important and are willing to pay a premium for the experience

·         49 percent love to shop

·         42 percent prefer to shop online

·         80 percent are comfortable using digital wallets

·         86 percent have left a store due to long lines

Spendsetters also have three overarching shopping demands:

Convenience

·         75 percent would shop more in-store with a "just walk out" payment experience

·         69 percent would shop more in-store with shorter lines and direct shipping of out-of-stock products

Context (personalized)

·         57 percent say the ability to check if an item is available online before going in-store would increase their loyalty to a retailer

·         53 percent prefer a store with a mobile loyalty program

·         72 percent would shop more with personalized product recommendations and coupons, based on location

·         61 percent want personalized experiences based on past purchases and preferences

Control (interaction on their terms)

·         59 percent want to use a store-branded app to pay onsite

·         80 percent are comfortable using digital wallets

·         53 percent would shop more online if they could use a chatbot with personalized recommendations

·         80 percent would increase shopping frequency online through marketplaces

The survey also examined issues from the retailers' perspective:

·         46 percent of retailers are considering cashless stores

·         67 percent see an increase in customers using their mobile phones in-store for coupons, payments and product info

·         64 percent see a need for associates to use mobile devices to better assist customers

Additionally, when it comes to luxury retailers, 85 percent see an increase in customers using their mobile phone for shopping in stores in regards to coupons, payments and product information, and 74 percent are considering cashless stores that only accept cards and digital payment.

So just what is your New Electricity? Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us

TGI Friday’s Digital Touchpoints Drive Customer Adoption

Successful restaurant marketing requires continually edifying relevant customer touchpoints according to Steven Johnson, Grocerant Guru® at Tacoma, WA based global grocerant consultancy Foodservice Solutions®.

When TGI Fridays elevated their digital offering they knew they were doing all of the right things as 70% of Take-Out orders were coming from new customers.

TGI Friday’s is but another restaurant brand that has created a partnership with Amazon allowing consumers to place and complete orders via Amazon Aleza and Amazon Pay.  It might be noted that TGI Fridays was the first chain restaurants to ofer the ability to pay with Amazon while placing the order on Alexa.

Once again leading the pack with voice-activated platforms TGI Fridays understand that the consumer is dynamic not static and restaurant brands must move with the consumer. Using Alexa to order and not having to pull out a credit card save time, is simple, and provides a new avenue of distribution with very low cost of entry.  Simply put it cost a lot less than building a new store.

Amazon Alexa’s software program has an upselling component, suggestive selling component driving up customer satisfaction and the check average.  Sherif Mityas, Chief Information Officer at TGI Fridays stated “From the launch of our Friday’s mobile app, to our order-ahead feature on the Amazon App and our social media chatbots powered by Conversable, Fridays has committed to delivering a great guest experience both inside and outside of the restaurant”. 

Success does leave clues and listening to consumers and edifying customer touchpoints is our clue of the day.  Since Fridays introduced 30% ‘bigger’ ribs in October, the menu item drove 45% increase in carryout sales in pilot markets. 

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant

Literally Talking Food Sales Domino’s

Complexity free foodservice continues to expand its footprint elevating grocerant niche Ready-2-Eat and Heat-N-Eat fresh prepared food sales in every avenue of retail food distribution. The team at Tacoma, Washington based Foodservice Solutions® believes Domino’s technology team is setting an example of how complexity free foodservice will look as they enhance Amazon Alexa skill-set once again.

Domino's Pizza, digital ordering platform, was the first pizza company to launch a pizza ordering skill on Amazon Alexa last year. Now Domino’s is expanding this skill to offer a customized ordering experience with no saved account or previous order necessary. Ordering Domino’s with Alexa is now even easier and more robust or as we say here at Foodservice Solutions® complexity free.

 Domino’s senior vice president and chief digital officer Dennis Maloney stated “We’re excited to give our customers a more advanced and easy-to-use ordering process through Amazon Alexa. “Now it’s as simple as asking Alexa to order a pizza from Domino’s and from there, customizing it to one of our millions of possible combinations—no Pizza Profile needed.”

Now you can place an order for Domino’s with Alexa by saying, “Alexa, open Domino’s.” Once in the Domino’s skill, the customer will be guided through the ordering process, from building a pizza to placing an order. Customers who ask for a deal can receive 20 percent off every menu-priced item in their order.

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.